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Novacyt Posts Flat Revenues for H1 2018

NEW YORK (GenomeWeb) — Novacyt today reported revenues of €7 million ($8.1 million) for the first half of 2018, unchanged from the year-ago period as gains in the company's Lab21 protein diagnostics and Primerdesign molecular diagnostics units were offset by weak demand for its Novaprep cytology products.

For the six-month period ended June 30, Primerdesign revenues rose 15 percent to €3 million, which Novacyt attributed in part to growth in core research-use-only markets. Lab21 revenues, meanwhile, rose 3 percent to €3.4 million year-over-year.

Revenues from the company's Novaprep business slid to €600,000 in the first half of 2018 from €1.1 million a year earlier. While Novaprep sales were expected to be lower during the first six months of the year, Novacyte said supply chain issues had further impacted the segment's performance — an effect that will continue in the second half of 2018.

The firm noted that it is planning a strategic review of the Novaprep unit, which is expected to conclude within the next six months.

At the end of June, Novacyt had cash totaling €2.2 million. In May, the Paris-based company said it had entered into a €4 million unsecured debt facility with an undisclosed institutional investor.

Aside from Novaprep, "the group performed well and we continue to make good progress across our strategic objectives," which include the planned acquisition of Omega Diagnostics infectious disease business, Novacyt CEO Graham Mullis said in a statement.

In late June, Novacyt said that it had agreed to buy the business — which manufactures a range of diagnostic kits including ones for syphilis and febrile antigens, as well as latex serology tests — for £1.8 million ($2.4 million) plus up to £2.2 million in milestones.

"We have a strong order book going into the second half of the year, which is traditionally stronger than the first half of the year, and we remain committed to achieving profitability for the full year on an organic basis," he added. "The profitability of the recent [infectious disease] business from Omega will add to the underlying EBITDA profitability of the group and we will continue to evaluate selected accretive acquisition opportunities and expect to provide an update on the Novaprep business unit review in due course."